A scrap metal dealer claims that the mean of its cash sales is ‘no more than $80’, although an Internal Revenue Service agent believes that the dealer is being dishonest. Observing a sample of 20 cash customers, the agent finds the mean cash sales to be $91, with a standard deviation of $21. Assuming the population is distributed approximately normally, and using the 0.05 level of significance, will the agent’s suspicion be confirmed?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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A scrap metal dealer claims that the mean of its cash sales is ‘no more than $80’, although an Internal Revenue Service agent believes that the dealer is being dishonest. Observing a sample of 20 cash customers, the agent finds the mean cash sales to be $91, with a standard deviation of $21. Assuming the population is distributed approximately normally, and using the 0.05 level of significance, will the agent’s suspicion be confirmed?

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